The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1887-02-04
Che 9ailu 9mllstia.
FRIDAY. FEB. A. 1887.
PRESIDENT clrvslANUs MESSAGE.


and currency questions, in the fol-
lowing words -
Apart from its references to the
fishery dispute with Canada, the
negotiations with regard to which,
we are told, promise to lead to
reasonable settlement, the portions
Of President Cleveland's Message
which excite most interest here are
those that deal with the tariff and
currency questions. Both of these
questions have latterly been forced
into greater prominence by the
financial prosperity Of the States,
and although it may be doubted
whether Congress will be inclined to
take any definite action with regard
to them during the short Session
now opened, they will certainly
press for solution in the near future.
The main factor in the situation
is the enormous revenue surplus that
now yearly accrues to the Treasury.
Thus, in the year ending June last
the revenue exceeded the eXpendi-
ture by fully 1871 millions sterling,
and it is calculated that if no change
is made in the scheme of taxation,
the current year will yield surplus
of fully Is millions. In the past this
free revenue has been applied by the
Treasury to the reduction of the
National Debt. But the limit of its
use in this way has now been nearly
reached. The only debt bonds
which the Government have the
power of redeeming at will are the
81 per cents, of which only about
15,000,00Ol are now outstanding.
The remaining debt consists of A
per cent bonds, which are not re-
deemable until the 1st of September,
1891, and per cents, which do
not become redeemable until the 1st
of July, 1907. The time is conse-
quently close at hand when all the
debt which the Government have the
option Of paying off will have been
redeemed, and then, as President
Cleveland points out, ''if the pre-
sent revenue system continues,
there will be vastly more income
than is necessary to meet expenses,
thus creating an excess which may
be uselessly boarded, or lead to
wasteful public extravaganza"
The spectacle of a treasury groan-
ing under the weight of huge sur
plus, and casting about for some
means of relieving itself of the bur-
den, is one which the people and
governments Of the Old World must
regard with envy. Yet, however
enviable the financial position of the
States may appear from the stand
point of those nations that have a
never-ending struggle to make ends
meet, to the Government at WASH
ington it is embarrassing enough.
The ready way out of the difficulty
is to reduce taxation, but every at
tempt in this direction meets with
strenuous opposition. The two main
sources of revenue in the States are
the duties levied on imports and the
Excise duties on spirituous liquors
and tobacco. Against any material
modification of the import duties the
Protectionists will fight tooth and
nail; while, on the other hand, there
is large, and probably prepond-
Grating, volume of public opinion
against a reduction of the Excise
duties. which are certainly not ex-
cessive, and fall upon class Of
commodities which in all countries
are rightly regarded as the most
legitimate objects of taxation. Thus
no proposal which the Government
may make will meet with general
acceptance; and although President
Cleveland strongly recommends the
repeal of all import duties on raw
materials, and gradual reduction
of the duties on manufactured
goods, Congress, it is to be feared,
will hardly be inclined to act at pre-
sent on his suggestion. The dis
position will probably be to defer
coming TO definite decision until
all possible debt redemptions have
been effected, and meanwhile the
Protectionists will be striving to
dissipate the surplus, either by in
creasing expenditure, or by divert
ing to local authorities some portion
of the excise revenue that is now
collected by the State. There can
be no doubt, however, that the
superhuity of the Treasury resources
has given the free-traders strong
vantage ground from which to press
forward the question of tariff re.
form, and to press it with much
better prospects of ultimate success.
One suggestion for the disposal
of the surplus which has been made
by Mr.. Manning, the Secretary of
the Treasury, is SO briefly referred
to in the kilograms, that further in
formation respecting it is needed be-
fore it can be properly discussed.
Mr.. Manning, it would appear, pro-
poses that excess revenues should
be applied to redeeming the GOT
millions or so of greenbacks now in
circulation. AS matter of fact,
If the retirement of the Government
paper money were resolved upon,
there would not be 694 millions to
redeem out of revenue, but only 49a